Most people see retirement years as something they will enjoy when they are past 65 years old. However, many people have managed to do it much sooner. Nowadays, it is possible to see such examples all over the world. The most prevalent example is couples who find a way to retire at 30 with a lot of savings safely stored in their bank accounts. If you want to find out how to retire by the age of 30, keep reading.
Manage Your Finances
Managing and carefully planning your finances and spending enables you to know exactly where you stand with how much you can afford to spend and how much you need to save in order to achieve your financial goals. It is advisable to do a comprehensive analysis of your assets, your income, and your expenses. This will enable you to pinpoint and cut back on unnecessary expenses.
Save as Much as You Can
After assessing your finances and cutting back on trivial expenses, you can start saving much more. One couple managed to save 60% of their annual employment income for three consecutive years. The savings accumulated to over $1 million. The way they were able to do this is by moving to a cheaper area and intensely cutting down on their spending on things like driving and laundry – they walked or cycled, and let the laundry dry in the wind.
Focus on Your Job as Your Main Source of Savings
The majority of your savings should come from the income you get through your job. You can also do additional things to increase the amount of your savings, such as find a second job or rent out a property you own. So, stick to your job in order to make your early retirement dreams come true and stay that way.